Pakistan Vanaspati Manufactures Association (PVMA) has warned that all ghee and cooking oil mills across the country be closed for an indefinite period which would result in serious shortage of ghee and cooking oil in next few days. The closure of the mills will continue until government provides security and safe transportation to edible oil consignments from Karachi to other parts of the country.
Abdul Wahid Sheikh, Chairman PVMA while addressing a press briefing here on Monday, said "We request the government to provide us security and it is the only demand of our industry. We have no intention to demand tax exemptions, but the government must assure full security to the consignments of the ghee and cooking oil industry across the country. The ongoing strike would continue for an indefinite period unless immediate practical measures were not taken to save the industry from tanker' mafia backed by local government administration".
He regretted that the industry is paying huge amount of taxes annually. "We do not want to close our factories but the decision has been taken due to unfortunate incidence that took place in Karachi. It is very unfortunate that the large taxpayers have not been provided security due to immense pressure of the tanker mafia", he added.
He said that the industry is paying Rs 60 billion in the form of direct taxes and its overall contribution in taxes is around Rs 90 billion. This industry is one of the biggest taxpayers, but the local government administration has totally failed to prove security to the transportation of the edible oil. It is being apprehended that due to closure of ghee and cooking oil units across the country, there would be huge shortage of ghee and cooking oil. The daily consumption of ghee and cooking is 6000 metric tons and the closure of the industry would result in shortage of these items in the next few days. This most essential food item would vanish from the market in coming days.
As per details of the incident, the imported consignments of edible oil were cleared from the Port Qasim and loaded on the NLC containers for transportation for the ghee and cooking oil mills. The incident took place despite clear orders of the Sindh High Court that no party will take law in its hands, and both the NLC and private transporters would continue smooth transportation of edible oil from Karachi to other destinations. The incident has also shown helplessness of the ghee and cooking oil mills at the hands of transport mafia, which has deliberately burnt the oil tankers causing loss to the concerned industry.
The Chairman said that a meeting was held on Sunday (February 19) among the PVMA representatives and top military brass which concluded that NLC would continue lifting edible oil while security measures to be beefed up. During meeting with the senior army officials, it has been agreed that more security would be provided to the transportation of the edible oil consignments through the NLC.
He said that an organised tankers mafia is operating which not only blackmail the ghee and cooking oil units but also indulge in adulteration and even theft of the edible oil consignments during their transportation from Karachi to upcountry.
The Chairman said that the height of lawlessness and not obeying High Court's directions has created a wave of fear and un-certainty among Manufacturers of Vegetable Ghee and Cooking Oil. Under prevailing circumstances, PVMA requests all Law enforcement agencies and concerned ministries to take appropriate action against the miscreants and save the Industry by providing security.
"Tankers' mafia is continuously demanding that there should be no supply of vegetable ghee/cooking oil through NLC despite the fact that the transportation charges being charged by the transport union are almost double as compared to the charges in the open market", said Shoaib Khan, Vice-Chairman PVMA.
"The tankers' mafia wants to retain its monopoly while it was the fact that the NLC is lifting just 20 percent of the total supply of edible oil and the rest of 80 percent is carried out through the tankers' mafia", Shoaib added "The oil tankers of NLC costing Rs 70 million were burnt by the mafia and the government is still like a silent spectator. "Except registering an FIR, nothing has been done in this regard", Umar Islam Khan, Secretary General PVMA said while responding to a question during the briefing.
Umar Islam Khan said, "We are in agreement with NLC since 2007. According to this agreement, we are bound to use the tankers of NLC to supply edible oil to the vegetable ghee/cooking oil mills across the country. So, as per the agreement, the supply of edible oil through NLC can not be stopped at any cost".
He added that almost 0.25 million tons edible oil has been supplied by NLC since the year 2007. The closure of Industry would make 48,000 households unemployed and cause loss of national exchequer to the tune of Rs 200 Million daily. It is a matter of grave concern that the prices of vegetable ghee and cooking oil are expected to increase after closure of mills. As per the decision of the Association, the gates of all the ghee and cooking oil mills have already been closed from Saturday (February 18) and the strike would continue until assurance of safe transportation of edible oil consignments from Karachi to other destinations, Umar Khan added.